In discussions with Kevin Zho, co-founder of CoinDesk and Galois Capital, it was explained that an estimated $40 million in total funds are currently locked in FTX.
Crypto hedge fund Galois Capital famously predicted a Terra crash earlier this year, the collapse of the $60 billion stablecoin ecosystem catalyzing the current bear market.
At the mercy of the bankruptcy process, Galois (and all other FTX investors) may have to wait a while before they can access the funds.
For the record, yes, there was a lot of money stuck in FTX. No, we do not transfer funds in the Bahamas way.
— Galois Capital (@Galois_Capital) November 11, 2022
Galois Capital, on record, admitted that it did in fact have “significant amounts of funds stuck in FTX”, but did not employ “the Bahamian method of moving funds”.
In a letter to Galois investors, Mr. Zhou said it could take “several years” before the money starts to come back.
We will work tirelessly to maximize the likelihood of recovering stagnant capital by any means.
FTX does not back users’ holdings of funds on a 1:1 basis and FTX cannot facilitate withdrawal requests without relief of the relief capital.
Zhou concluded by explaining that Galois is currently considering whether to continue business as usual, become its own trading outlet or pursue an acquisition.